Thirty-year fixed mortgages fell to 6.94 percent from 6.97 percent a week ago, Freddie Mac reported Thursday, with fees and points of 1.1.
The fee and point average is a one-time payment when mortgage rate are set. One point equals one percent of the loan.
Thirty-year mortgage rates were below last year's 7.46 percent level.
Average 15-year fixed mortgages edged higher for their second week. Fifteen-year mortgage rates were 6.63 percent with fees and points of 1.1, Freddie Mac said.
The one-year adjustable rate dropped to 5.61 percent from 5.65 percent last week, with fees and points at 1.1, down from 1.3 a week ago. A year ago, one-year adjustables were at 5.53 percent.
Thirty-year mortgage rates are based on 30-year Treasury bond yields. Thursday, the 30-year Treasury fell 1/32, to yield 5.673 percent.
Rates have remained relatively steady and below 7 percent. Low interest rates have kept the housing industry strong, while most of the economy has slowed slightly, the government reported Thursday.
Freddie Mac Chief Economist Robert Van Order said that although the housing industry is likely to remain strong, it may experience a slowdown later this year.
Written By Tiare Rath